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CME Updates Shutdown Changes for Lean Hog Settlement Prices

Government shutdown continues to impact data availability, trade

Published on: Oct 16, 2013

The CME Group Wednesday issued an update to customers regarding its calculation of settlement prices for October lean hog futures, indicating it would use a new calculation method in lieu of USDA price reporting.

The CME says instead of using the USDA data, the final settlement for October 2013 Lean Hog futures and options contracts was calculated using the volume weighted average price of the October 2013 futures contract for trades occurring during the 2-day period of October 11 and 14, 2013.

The calculation incorporates both floor-based and Globex-based trading activity during regular trading hours only, 9:05 a.m. to 1:00 p.m. on October 11 and 9:05 a.m. to 12:00 noon on October 14.

Government shutdown continues to impact data availability, trade
Government shutdown continues to impact data availability, trade

The final settlement price for October 2013 Lean Hogs futures and options contracts based on the procedure described above is 90.62. This final settlement price will be applied to any open positions in October 2013 futures and options on the normally scheduled date of October 16, 2013, CME says.

The changes are allowed under CME rule 701, declaration of force majeure.

Price reporting from USDA has been unavailable since Oct. 1, when government funding authorizations expired. Congress continues to hash out a budget and debt ceiling measure.

For more, view:
Lack of Price Data from Government Shutdown Disrupts Markets
CME Tackles Lean Hog Contracts